Iran’s Islamic Revolutionary Guards Corps has threatened to block all oil and gas exports through the Strait of Hormuz in response to ongoing US military strikes, according to state-affiliated Tasnim news agency on Friday. The IRGC statement escalates tensions in the critical maritime chokepoint through which approximately one-fifth of global oil supply transits daily. The threat comes amid reported US military operations in the region, though specific details of the attacks were not disclosed in the announcement.
This development poses immediate disruption risks to energy markets, with potential supply shocks affecting crude and natural gas pricing. Major energy importers including China, Japan, India, and South Korea rely heavily on shipments through the strategic waterway. Any extended closure or even reduced traffic through Hormuz would create severe bottlenecks in global energy flows, forcing lengthy and costly rerouting of tankers. Market participants should anticipate heightened volatility across energy commodities and related instruments.
FXnCO Insight
Traders should monitor crude oil futures and energy sector positions closely for gap-up risk at Monday’s open if tensions escalate over the weekend.
Source: FXStreet